♪ i left my home in texas headed for the frisco bay ♪ ♪ the hard times and changes along the way ♪ ♪ ♪ ♪

♪ >> imus in the morning ♪ >> yes, the world is in love with smart phones. new developments. good morning, everyone, there's a published report that apple will produce a cheaper iphone for the china market, redesigned, big screen. apple not happy with its also-run status in the biggest market in the world and then there's the samsung galaxy, it leads the iphone in sales and shows on its bottom line. in a three-month period, samsung forecast record profits of more than 8 billion dollars. meanwhile, a new cliff approaches faster than we thought. the government runs out of money on february 15th according to one think tank.

so here we go again. a new countdown to disaster. deja vu all over again. "varney & company" is about to begin. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapr and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clnts in today. [ male announcer ] save on ground shipping at fedex office.

# # >> >> apple may offer a low cost iphone in china the first half of this year from the tech publication digit times. however, the buzz at the consumer electronics show this year is all about samsung. charles payne is with me. i can invest in apple right now instantly. i can't do that with samsung. charles: you can't. there's a little one that trades on a pink sheet. it trades by appointment, in the liquid, americans cannot buy and sell samsung. stuart: are they deliberately keeping me out, do you think? >> you know what? i've googled this and saw the question in 2005, america the gigantic market not just smart

zones, they want to conquer everything. >> they don't want all of our money flowing into their champion companies like samsung and taking them over. that's what it is. >> that's the crown jewel of south korea. stuart: 8 billion dollars of profit in 13 weeks, that's not bad. charles, stay right there, please. football next, alabama beat notre dame in last night's bcs championship bowl to give the crimson tide back, they got their-- i want to get this right, the football championship back, back-to-back champions and however, the most memorable moment from an otherwise lopsided game was this. >> you see that loving lady there, she does-- and miss alabama aj mccarron's girlfriend and right there is bb bonner and-- >> and they owed katherine webb, the girlfriend of the

quarterback. he still is talking about her. >> and one guy, miss alabama and mom is on the right, i think at this moment it might be like 150,000, it's just like, you know, that's nonstop. stuart: he wouldn't stop. >> no, he was smithen. okay, now, ms. webb is the reigning miss alabama, a model and current student at alabama's main football rival auburn. wait a minute, she's at a different university? >> well, the same thing. stuart: same state, that's the best you've got. >> and the same doctor. stuart: a good diversion. charles: 'cause i get nervous when i see women in bikinis, i'll say the wrong thing. she looks like a young alexis glick. stuart: whatever you say, charles. president obama doesn't have a spending problem, still, scroll up on the prompter, they're slow

this morning. still-- >> they're looking at the pictures, is a bikini thing. stuart: we've got to go, i'll tell you about the new debt ceiling date. stay right there. [ male announcer ] where do you turn for lel matters? maybe you want to incorporate a business. orrotect your family with a will or living trust. and you'd like the help of an attorney. at legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. get started at legalzoom.com today. and now you're protected.

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13,384. we're expecting a modest gain at the opening bell. not much. maybe 20 points. could move it back up to around 13-4. we'll see. no major news development in the background today except maybe that approaching cliff on the debt ceiling. apparently that's not having much on the market. the big board opened, dow opened down 10. down 10 in the very, very early going. i've got this for you. a new cheap iphone for china, different design, bigger screen. i've got to believe that's going to move apple up. nicole, tell me. >> up 1%, and this is interesting, the new cheaper iphone over in asia and here is the stock 528.88 a gain, about $5. 5.25. it's not a huge gain, but means that apple is serious about getting back into and a better position in the china market because it's way down there at

the moment. >> their products are not cheap. their products are not cheap. they're very expensive products and to have a lower end model, a cheaper product has got to be good news for them. stuart: i want to move on to at&t. just heard that it sold 10 million smart phones in the fourth quarter. so, is at&t stock up? >> that's a record, that's a record. let's see what a record brings at&t shares. 34-97 to the upside. we've got the dow industrials opening down 26 points and maybe not fiscal cliff, no, the debt ceiling cliff, maybe that's having a minor impact on the market, but that's not much of a movement thus far. now, we've got speaker john boehner, he says that president obama admitted during those closed door budget negotiations, the president admitted that, i'm quoting now, we don't have a spending problem. got it. now, take a look at the current debt clock, 16.435 trillion dollars, clearly, we're spending up a storm and running up maximum debt.

now we hear we're going to run out of money totally on or just after february the 15th. way ahead of the treasury's expected date. is this a new cliff? it looks like it, joining us now is fred barnes from the weekly standard. what a pleasure to have you on the show again, it's been years, where have you been. >> i've been around, thanks for having me here. stuart: what do you make of the new cliff, i'm calling it a new cliff. february 13th or shortly after what, do you make of it. >> we knew it was coming sometime and look, the administration does this arbitrarily, still have plenty of money to pay the debts we've already incurred. what they want to raise the debt limit for, to borrow more money for more spending. you mentioned john boehner's statement, that was his revelation, president obama told him there is no spending problem. well, you can disagree about how big the spending problem is, but obviously, there is a spending problem and i look at this as

another, another instance where if the american press, the press corps, particularly in washington, were interested in a real story, they would pursue this with president obama. i mean, did he really say this? what did he mean? and they don't. >> they don't. >> it's only been one day, there's still time, but i'm not getting my hopes up. stuart: now the latest from nancy pelosi saying, we want more tax revenue. the 620 billion was not enough. the president says we don't have a spending problem. he's implying that there's going to be more tax coming in, a higher, i think it would be by cutting deductions. so, we're still miles apart as this fresh new cliff arrives. it's still a huge standoff, isn't it? >> it's a complete standoff and of course, president obama is very hard to reach and deal with in any case and that's why unlike every president i've covered has always been able to engineer bipartisan agreements with the other party in congress, but the president

can't do that, particularly because no matter what happens, he just won't deliver spending cuts. nancy pelosi doesn't want them, but president obama, i mean, this is a continuing complaint of john boehner and one of the reasons why he says, now, look, i'm just not going to do any of these back room negotiations with the president because he just won't give us anything. he won't -- there's no compromise. stuart: don't you think the media at some point, i mean, like now, will turn around and say, wait a minute, wait a minute, wait a minute, no spending cuts at all? and more and more taxes? won't the media at some point say, hold on a minute, we can't -- we can't do that? are they going to turn soon? >> well, hope springs eternal, including with me, but we haven't seen any evident of this yet. look, the whole press corps has reported so favorably about president obama. he had a honeymoon for his first four years and you would hope, and i -- there's something in me

that tells me that they will get tougher with president obama and here is a perfect chance, as you've outlined it, stuart. you know, you have -- here they're doing things that i think many people who voted for president obama didn't expect him to do. they weren't expecting another huge tax increase. i thought-- i think many of them thought that just raising the income tax rates on the wealthy would be enough and here they're talking about a trillion more and no spending problem? >> fred, i just can't believe that the media will continue to beat up on the republicans when clearly there is no intention of cutting spending or just how we'we are saying getting spending under control and continuing to raise taxes on a small group of people. and it's just not true if you raise taxes on the rich you can pay for all the goodies that we're spending money on. i'm convinced that it's something, maybe i'm naive.

i'm convinced at some point pretty soon some in the establishment media will point this out. >> you would think so. the coverage of president obama is not, if there's deal to be made and spending cut, they would somehow find a way to do it and reach a compromise with the political opposition. when the president's in negotiations he's not expected to do anything and if they break down, it's the republicans' fault. stuart: is there a leader in the republican party that's pointin1 things out, telling it the way it is, you can think of at the moment? >> well there are some. i think we're going to hear more from paul ryan for sure. he hasn't been that outspoken recently, actually since he was the vice-presidential running mate of mitt romney and the election was lost. but i think we're going to hear a lot from him and we need to. and also, marco rubio, because those are the two who will get

media attention. >> maybe i'm naive, but i'm expecting a modest media turn at some point in the near future. hey, i'm naive. >> the sooner the better. >> please, please, fred, always a pleasure. thank you very much indeed. >> thanks for having me. >> i've got two new developments on the gun control debate. first off, former congresswoman and gun violence victim gabby giffords she launches a national group for gun control. and following the visit to newtown, connecticut, one said quote, gabby giffords, stay out of my town. and new at 10 we talk to someone and ask him how a ban on gun could curb violence. we'll ask him. and you shop in the store and find the best price on-line, target doesn't want you to do that. it says until watch the best price on-line not just the holidays. >> this is interesting, the stock is down nearly 1%, the

retail index is also lower. this is such an interesting concept. something they put in place over the holiday season and now, they're instituting it the full year and they will meet and match all these stores. not every store on the planet, but the big ones, amazon, wal-mart, best bio, toys "r" us, if it's within seven days of your purchase and you see it for less, you can bring your receipt, bring your toys "r" us circular and say, look, toys "r" us has this lego for less and you can get that money back. stuart: just seems like a very long, drawnout process. i wonder how many people are actually going to do that. >> two things, number one, it's very aggressive move. let's see if it actually works, means they're not going to make high margins, secondly, it brings confidence to the shoppers, if you think you're going there, you don't need to look around anymore, right? if you know you're at a place that matches and has lowest prices, why look around, you're not wasting your time. stuart: maybe so. the stock is down, that's the bottom line here, nicole, thanks

a lot. charles, goldman sachs says that the fiscal cliff deal is going to take what, roughly 200 billion dollars out of consumer spending power. charles: right. stuart: do you think the target move has anything to do with the spending power out of the economy. charles: this is a more long-term deal and staving off a major competitor. amazon is probably the biggest threat to the brick and mortar. you remember when this started brick and mortars are going away and that didn't have, but toys.com had a bigger market cap than toys "r" us, and the amazons of the world do present an amazing threat and it's a long-term threat. >> record high for amazon yesterday. charles: and still getting upgrades. a lot of firms, wall street firms have buy recommendations. stuart: isn't it running webs and on-line site for other companies as well as itself. >> amazing. stuart: i want to check amazon later on, see if na-- and the seven-- charles is next to me i'm doing

the seven early movers he's the expert, i'm not. yum! brands, parents of k.f.c. and taco bell expects china sales to fall more than expected. and that stock is down. quite sharply down 2 bucks. retailer wet seal named a new chief ending a rocky time for that company nonetheless the stock is down again. profits were up 35% of the industrial services company team. and it's up. the oil and fuel products company is offering shares to repay debt. the market kind of likes that? no, it doesn't. down 2 bucks. manufacturing services, plexus, it expects profits to disappoints and stock is down. fired up about earnings season kicks up after the bell alcoa first out of the box, virtually unchanged this morning and hedge fund manager freddy lampert i'm sorry, eddie lampert taking over as chief of sears. he's the chairman and taking over as ceo and that stock is down a buck.

any comment? >> i don't mind you starting off with a loser, but you always finish with a winner to get the crowd going. stuart: you're telling me how to do my job on the seven earlies? >> just making a helpful suggestion, that's all. stuart: helpful suggestion. charles: i mean, listen, eddie lampert has always been a ceo at sears since they took over. you did the show for me while i was in california. did you like it. charles: i loved it. stuart: okay. the c.d.c., that would be the centers for disease control, it says this flu season will be the worst in a decade. it's an epidemic. should you believe the hype? dr. siegel is still trying to give me a flu shot. i will again decline. remember this? doctor's next. >> why is it that every year, just for the past four or five, six years, we are told, oh, you really ought to get a flu shot. i never heard of that before. >> you should have a flu shot, stuart. if i thought i could talk you into it i would have brought one with me and given it to you right here on the show. [ male announcer ] how do you trade?

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>> are you home sick right now? the centers for disease control and prevention is reporting a severe flu strain spreading across the country. some doctors say this is the worst flu season in years. they all say that. still, i refused to get a flu shot despite the recommendation of dr. marc siegel here one more time. we have these epidemics and they call them epidemics every single year and every year is worse than the the last year. go get a flu shot. come into my office, charge you $50 to walk across the door and another $100 to give you the flu shot. you want to suck me into your medical world, don't you, dr.

marc siegel. >> you're doing a public disservice. stuart: no, i'm not. >> yes, you are, i'm talking about the overreaction, contagion and i'm an expert and written books on flu i'm telling you this is a bad flu season, it's not like every public health scares are a joke, some are real. the flu, this particular strain is similar to the one which in 2003 led to over 40,000 deaths. when people get the flu, they get fatigued, high fever, prone to pneumonia, bronchitis. if you're very old you don't need something like that. a flu shot is very safe. you're going to plug into the fear mongers, oh, the flu shot is loaded with mercury. stuart: no i'm not-- >> do you think the flu shot is safe, why not get it? what's the big deal. get it because it decreases your risk of getting the flu by about 60%, and will help you protect your family. and i have a child that's

asthmatic, why-- i have a child that's asthmatic one of the reasons i get a flu shot i don't want him to get the flu. stuart: let me go back to my youth the 50's and early 60's, i remember a big headline, the asian flu in the british tabloids, asian flu strikes, the hong kong flu strikes, dropping like flies, that's 40 years ago, 45 years ago. has there been a flu epidemic every single year? does it happen every single year? you always tell us the same thing, worse than last year, getting terrible. don't you say that? >> yes. stuart: you do say that. >> the flu is one of the things we worry about, it's a wily character. the flu changes all the time. it's always mutating. stuart: there is a little bit of hype. you don't think there's a little bit of hype. >> tremendous hype, if i came on here in 2009 when the swine flu was 9, i would agree, so much hype was made out of the swine flu, the world health organization. stuart: you talked about it. >> that's right, the world health organization hyping it and drug manufacturers producing--

>> there is your book, swine flu, the new pandemic. >> i will tell you there was a lot of hype made over that. you're not totally wrong. stuart, you're not totally wrong here, but we also shouldn't mock what is a serious illness. charles: what about the suggestion this particular strain, these flu shots don't address it anyway. >> they do-- that's a good question, in 2003, a bad match. this year looks like a very good match, charles. so this year it will take care of the strain. stuart: you're asking questions the end of the interview and almost drop a commercial break because of that. >> he hosted yesterday. he was good. stuart: i know, i thought the numbers were pretty good. and time for the gold report. where are we this morning, i believe we're higher in price, yes, we're up nine bucks and 1655 is your price for one ounce of gold this morning. why are you laughing? >> well, during that interview dr. siegel suggested you were very old and cleaned it up later

on saying were you very smart. >> i didn't say he was old. stuart: yes, you did, i heard you say it. we've got two union outrage stories for you next. first, a crowd applauds after the head of the chicago teachers union jokes about beheading the rich. a new york city mayor michael bloomberg facing criticism after comparing the city's teacher's union to the n.r.a. sandra smith slapping charles and get out of her chair. back in a minute. ♪ why can't we be friends, why can't we be friends ♪ ♪ why can't we be friends ♪ [ male announcer ] this is joe woods' first day of work.

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>> two union stories for you now. first off in illinois, where the president of the chicago's teachers' union karen lewis suggested that past labor leaders preferred to resolve disputes with murder. she said we're at a point where the wealth disparity is reminiscent of the robber baron ages, and the leaders at that time were ready to kill. she received applause and laughter for those remarks. new york, mayor bloomberg compared teachers unions to the n.r.a. saying that like the teachers union quote, the n.r.a. is another place where the membership, if you do the polling, doesn't agree with the leadership.

the teachers union no surprise demanding a public apology from mayor bloomberg. sandra, first to you, i think those remarks in illinois were a joke. and i think they should be treated as a joke. she was being tongue in cheek and flippant. >> three strikes you're out. she, back in 2011, made some comments about education secretary mocking the education secretary's lisp in public and forced to apologize for it saying she was just trying to make light of the situation. you know what? enough is enough. stuart: you won't cut her slack. >> no slack for that one. but on the mayor bloomberg thing, his team has come out and spahned and basically said that the teachers union is exaggerating his comments trying to create a side show because they're walking away from the negotiation table. so, now what? it's just, it's just a whole lot of mess in my opinion. stuart: charles. charles: and lewis is fickle. stuart: it's a strong word. >> a strong word and grotesque person, i'm not talking

physically, she should not have any attachment to our children, and she's terrible as far as the mayor is concerned, i think he's playing politics as usual. stuart: much charles, welcome back. and gabby giffords spokesperson for gun control, she says she's told to stay out of newtown, connecticut. we'll tell you why and we've got a debate going on with a gun control advocate. that will be new at 10. this is $100,000. we asked total strangers to watch it for us.

thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. but i'm also on a lot of medications that dry my mouth out. i just drank tons of water all the time. it was never enough. i wasn't sure i was going to be able to continue singing. i saw my dentist and he suggested biotene. it feels refreshing. my mouth felt more lubricated. i use the biotene rinse twice a day and thei use the spray throughout the day. it actually saved my career in a way. because biotene really did make a difference.

stuart: tuesday morning, congressman gaby deferreds -- --giffords and habit of and control but newtown accuses her of politicizing the events there. we have a gun-control advocate coming up in a few minutes. we will let him make his case. big news from samsung and apple, giant battle each other, samsung record profits, apple making a special iphone for china. talking about that coming up. to the big board down 46 points in early going tuesday morning. here is our company of the day, sandra smith is here, charles payne still here, nicole petallides on the floor of the stock exchange, yum brands, kfc

and all down big. we want to know why. nicole: taco bell, yum brands has a slew of these retailers under their belts, fast food chains. this is really about china and same store sales numbers being disappointing. with that, the stock is down dramatically dropping 5%. stuart: you do badly in the china market or it looks bad in the china market and you are stuck with it. nicole: matt is their growth area, that is an area of strength for them. to have this revenue is good news. stuart: i want to bring in clayton morris at the consumer electronics show in las vegas. he has some pretty cool stuff. welcome back. i want to start with the cover for a smart phone. lot of people dropped them in water, people drop in the toilet, we know that but here they picks. show me. >> two fixes. a little bit different.

let's start with this, your normal smart phone. folks from hbo, you mail your smart phone to them. we have a tank of empty water. this phone is working perfectly. i borrowed one of your beers. and pour it on top of the phone. stuart: does this happen to you? >> very often. there it goes, still works perfectly even after being dumped in beer. it is water repellent. mela and they take care of it. one solution -- sony rolled out of it. one solution -- sony rolled out their new phone day. people dropping phones and breaking the glass, no more with the sony experience.

drop it in water and it still works. pop out, the screen works as it did before. sony thinking ahead and thinking why don't we shift at liquid repellent stuck in the phone book before you get the phone. stuart: it is not revolutionary stuff but useful for a lot of people. something that caught my eye, a tablet, a fair sized tablet fits in a coffee table. the family sits around and it plays with it. is that big? >> it has a lot of buzz. a lot of tech bloggers are abuzz with their idea, a 27 inch tablet. the idea for me is portability. i have the ipad mini in front of me, e-mail and stuff, portable and light. this is huge. demand for the family to gather around and put up pictures and do different things and windows 8 pc and has the interactive

quality, you can see from the video i sent that people are playing air hockey on top of it so it might be fun for bars. microsoft tried to do this with a large surface, the giant cable no one bought, it was at one at&t store that people would use it for. stuart: you have beaten up enough on microsoft. i want to move on to this report. a reliable source, iphone is going to be a cheaper version with the big screen redesigned, cheaper version they will use in the china market. what do you make of that? >> it is digitized. don't know if you said tongue-in-cheek that is a reliable source, parts suppliers, interesting information and sometimes they are right and sometimes wildly wrong and sometimes they mail it like the ipad mini. i wouldn't be surprised if apple has a smaller phone in the works, multiple sizes is what apple does.

we see that in the ipad and mac book of wine. it would not surprise me. what would surprise me it apple releases the smaller phone only in china. doesn't make sense to me. may be lower cost perhaps but that doesn't seem to jibe with what apple does. they rollout product worldwide and apple has had great success rolling out the i phone 5 with a larger screen size. before the holiday they have record-breaking iphone 5 sales and two million phones sold, hard to believe they don't sell in china. stuart: when you shot that down, very much, see you again soon. a new study reveals college kids are higher on themselves than ever before. they think they are very special without all that macho accomplishment to show for it. is that a bad thing? we will talk to the voice of the younger generation, a favorite guest of ours who is often critical of his peers. he will join us at 10:45.

president obama says the federal government does not have a spending problem. a report from the bipartisan policy centers suggest we will hit our debt limit weeks earlier, february 15th, spending up a storm and it the debt ceiling. what do you make of that? charles: it stands to reason. even tim geithner is like listen, guys, dropping these hints saying how many times can we go through this. how many times can we keep the clock one second before midnight and i don't know. stuart: to say we run out of money on february 15th, that is not true because you have tax revenue coming at you. simply means the treasury has to decide where it will use -- charles: don't give veterans their benefits, some really stark and tough choices. the money coming in but how you did the out someone will be

passed. stuart: two sides are so far apart, president obama said rider told john maynard there is no spending -- tracy: president obama is ignoring the debt commission about the last report of the president's first four years saying over the long run as the baby boomers retire health care costs continue to grow, the situation will become much worse. the debt commission's words, president obama doesn't seem to be listening to that. i don't think anybody at home will disagree, over $16 trillion, we had a spending problem. stuart: they sold the deal of tax the rich, bring in more revenue and you can pay for all the spending which is wrong, just not true. it is wrong. i have got the other new at 10:00 store. congresswoman gabby giffords launching a gun-control initiative two years after a gunman killed six and injured 13 including gabby giffords at a shopping center in tucson, arizona. she paid a visit to newtown,

connecticut but one legislator told the former rep stay out, saying gabrielle giffords is publicizing the massacre. our next guest says he has the answer to gun control. joining us is the florida coalition to stop gun violence. welcome to the program. we want all sides of this debate and i want to tell you what was the first thing you would do, what do you want? the primary deal to stop this kind of event happening again? what is job one to you? >> comprehensive background check for everyone who buys a gun. stuart: we don't have that at the moment? >> we certainly do not. stuart: that would include gun shows and private sale of one gun to another to a private individual? you want every gun sale background check? >> if that would be possible. the only people with comprehensive background checks are law enforcement. you buy one at a gun store you don't get a comprehensive check. you just get a check.

stuart: would this take new legislation at the state level or the federal level? >> it would take something that has to be done at the federal level. stuart: let me go back to this newaccount situation. what you are proposing, background checks for everybody who tries to buy a gun, that wouldn't have prevented the newtown tragedy because the young man got the guns from his mother who legitimately owned them. >> no it wouldn't but just because it is not a perfect system, not a good excuse for not doing it. stuart: is there anything else you would do? what is job 2? >> assault rifles, that is for sure, high capacity ammunition clips, up to make people accountable for the weapons that they buy and where they go to the next person is very important. in florida we are finding guns and business don't mix and we

have always done a lot of work in that area for businesses. charles: this is charles payne. i heard people say when you are saying with respect to background checks but what exactly are you looking for and what will you do? the reason i bring that up, let's say someone is on an anti-depressant drug. do they not get a gun license? >> don't know. if they are not on a band list for buying you can be a mental patient and still get a gun. stuart: then what is the point? >> we are back to your logic is because it is not perfect we shouldn't do it. stuart: hold on a second. charles's question is valid. if someone is on a drug regimen and they apply for a gun, the background check, would they be prevented from buying a gun with that background check if they are on some kind of anti-depressant drug? for example would they? >> no.

they wouldn't be on the no buy list. stuart: how do you get on the know by this? >> it is very difficult. you have to be admitted, treated by a doctor, it is very complicated. stuart: do you want a break in the privacy system where what goes on between the therapist and a patient is totally private and would not be intruded upon by a gun background check? >> and as part of a problem. part of the problem. stuart: it is indeed part of the problem. would you break the privacy rules? >> i don't know. i have never dealt in that deeply into that particular subject. stuart: if everybody had a background check, that would not necessarily prevent some of the events we have seen happening, what it? >> that is right. but just because it is not perfect that is no reason for not doing it. gerri: with all due respect it

doesn't sound like you've got the answer. it sounds like you have got a step that we can take it you are saying the background checks need to be better and we need to do them any way but isn't there a better answer here? >> no. a comprehensive background check along with registration of firearms along with other action is going to help. nothing is 100% perfect. stuart: we appreciate you being with us. we are trying to get some answers here. everyone is moving in the same direction, we want to stop this from happening again obviously. we appreciate your input into the debate and we would like to have you back again. thank you very much. another victory for the pro marijuana lobby, this one in california. is universal legalization inevitable? if so, when is it going to come? the judge is next.

stuart: at&t announced it sold ten million smart phones in just the 13 week period of the fourth quarter, an average of non -- 1 per 110,000 a day, it is a record that includes android and apple smart phones. that stock on the downside losing 1%. report says apple may release a low-cost iphone for china and other emerging markets.

the low cost phone would have a larger screen, new exterior design, no impact on the stock. maybe the market doesn't believe the report. video game store game stop said it would report a decline in same-store sales for the fourth quarter after a drop in store traffic during the holidays. shares of game stop are down 7%. a federal judge in california took on medical marijuana. judge andrew napolitano has the story. of an attorney. at legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. get started at legalzoom.com today. and now you're protected.

stuart: new jersey senate president stephen sweeney, an occasional guest on this program, is blaming chris christie's policies for the lagging economy, this coming ahead of chris christie at state of the state speech this afternoon. listen to what he said. >> we give the governor a jobs package. we gave him one. his job package, he created a lot and got lucky a storm came. stuart: the senator quickly backtracked those comments and apologized. that is the state of new jersey. landlords in california suffered a major blow after a federal judge rules in favor of medical marijuana dispensaries. in the ruling dispensaries are allowed to stay put even if their landlord doesn't want them there. judge andrew napolitano is here. judge napolitano: interesting that in new jersey, calif. not far from here, in new jersey, a

tenant of a landlord of real-estate, notoriously dispenses medical marijuana. the state is aware of it and authorizes it. the federal government is aware of it and does nothing. the 3,000 miles west in oakland, calif. you have a landlord trying to kick out the tenant and the federal government trying to seize the property from the landlord because the tenant in compliance with california law, the same law as new jersey law is distributing medical marijuana. the federal government has addressed these two issues in a vastly different way. california, a federal magistrate judge said it is a preliminary injunction, you don't have the right to kick the amount now. the federal government doesn't have the right to seize the property. we will have a trial and see what the effects are. stuart: reversal. judge napolitano: it is a preliminary set back for the victorian forces that want to interfere with the state law

permitting the dispensing of medical marijuana. stuart: why use the expression victorian? judge napolitano: and migrate grandmother. and speak of her that way. stuart: when do you think it ever do you think that we will have legalized marijuana in the united states on a federal basis? judge napolitano: i don't know if it will come on a federal basis whereby it actually the laws are written by congress. it may come on a federal basis where the federal government looks the other way and says we are not going to punish people for using it in the privacy of their homes in states where it is legal. the justice department has said that with respect to colorado and washington. use it in your car or sell it on a street corner we will come morsi you. use it in your home, buy it from a place licensed by the government of colorado or the state of washington, we will come at the. stuart: i don't understand why the obama administration holds that hard line against the

legalization of marijuana. i would have thought the man on the left, he is on the left, i would have thought he would come over -- judge napolitano: maybe because he doesn't have to seek reelection again. [talking over each other] judge napolitano: maybe he doesn't care about policing various constituencies. i don't know what his personal views are, but -- in colorado and washington. stuart: not in california. colorado and washington, recreational use of marijuana, the more difficult case to sell because anybody over 21 in the privacy of their home can use it. in california there is the intermediary, you have to go to a doctor and demonstrate the existence of pain, congressional means, and the doctor, the way -- that is what we interfere with. inexplicably would do so in

california and new jersey, i am arguing that treating the states equally. stuart: make a judgment. in the year 2001 everett is, 20 years from now, and marijuana, cigarettes, and not get prosecuted for it? judge napolitano: in the privacy of a home yes. i don't think so in a car or a public place or in the presence of children. i think the experiment in colorado, and a market? [talking over each other] judge napolitano: the 50 states, laboratories of democracy. sandra: the country has lost its right to smoke tobacco, cigarettes anywhere it wants little on marijuana cigarettes. judge napolitano: interesting observation. art and components of tobacco

and proponents of marijuana. explained that one. stuart: thank you very much. i heard this report, received the warnings, i have done this. read my lips, no flu shot for me. my take on that is next.

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>> you mentioned john boehner's statement. his revelation that president obama said there is no spending problem. we can disagree how big the spending problem is but obviously there is a spending problem. stuart: that was fred barnes in the last hour, the government spending problem, bipartisan policy center saying we will hit the debt ceiling february 15th, weeks before the treasury said we would it it. president obama says, quote, we do not have a spending problem. interesting situation. check the market, dow industrials down 55 points. take a look at the big board. 55 points down. sears is down again.

nicole: the ceo at ambrosia is stepping down and lambert moving into the role temporarily. here is the stock down 7-1/4%, some good sales recently, same-store sales, analysts say they were not as bad as they were anticipating. despite the s&p sales numbers we are seeing stock moving dramatically to the downside down 7-1/4%. stuart: well said. a new study says that college professors have the most stress free jobs in the country. a month off in winter, the entire summer off, yearlong sabbaticals full repay. at 10:35 we will ask a college professor is that really the case? i am about to make myself wildly unpopular in some circles. here's my take on the flu. we are told it is an epidemic, it is sweeping the country,

record numbers coming down for the nastiest flu bug in years. some of you watching this right now may be at home in bed suffering. i feel for you. i really do. but i have two problems with this epidemic. first, it seems the flu has become a media event. we show maps tracking the progress, doctors tell us what symptoms to look out for, offer advice on treatment, schools are contacted. how many absent from second grade today? more coming down with it every day. should i send johnny to school at all? every year for generations of the flu epidemic rolls around and every year the media calls it a threatening epidemic. problem number one for me, i don't like being sunk into media events. problem 2, i don't like being sucked into the medical world. i don't want to be pressured into getting a flu shot. i don't want to check my calls or temperature for telltale signs. i don't want to live in fear. most of all i don't want to start visiting the doctor's

office because they will always find something to charge you for and get you back for tests next week. this is not going to make me universally popular. of the come down with the flu will look bad but i feel real good. i have always felt good and i'm going to do my best to keep it that way and stay out of the dangers media medical world of doubt and fear.

stuart: the development of oil sanding canada causing cancer causing agents in nearby lakes. those ands in keystone pipeline would originate. the environment minister says the levels of contaminants are within legal guidelines. however it is a possible blow for the pipeline. it is not just washington d.c. that cannot get its act together but state have their problems too like illinois. that state has a $100 billion pension shortfall, no solution in sight. scott from the cme in chicago usually talk about futures for bonds and stocks and shells and cattle and pigs but today i put it to you, the state in which you live and do business is going belly up and you are going to ask me for a bailout, aren't you? >> me personally, no.

the state, maybe yes. what we are suffering from is the complete lack of common sense and ultimately we are going to have to start collecting politicians who can stand up to folks around them and say we don't have the money. they have been wrangling down in springfield for a few weeks now and have not come to a significant solution because there is no solution. we don't have the money. the politicians that has the guts to stand up and say that is the one that will be the savior going forward. stuart: can you be elected to a state office in illinois by saying no to anybody who wants more government money? >> of course not. i don't think anybody can't get elected to any office that actually has to say a word no. we dropped that word from our lexicon. there's only a three letter answer and it is called yes but going forward there is going to be no choice. we just don't have the money and whoever has to shrug their shoulders and say that will be the hero going forward but they won't get it because kids will get it and their grandkids will get it but a person has to

accept that no is the one who will be disgruntled. stuart: when you voted overwhelmingly for president obama. it wouldn't surprise me to be asking the fed for just a little help to tide us over. i can see a mile off. it was good fun while it lasted but the crunch is coming and we will see you when we get there. thanks very much. being a full-time university professor just won the title of least stressful career from careercast doubt on. criteria included 11 stress factors like physical demand, has ridge encountered, job outlook. joining us is peter morrisy from the university of maryland. do you as lazy as the study suggests? >> i was debating coming in to this interview in cutoffs. you can see it but i spent a lot of time this morning getting this decrease rate in my khakis to this interview.

stuart: you have a letter pad on your elbows like other academics? >> no because i had short arms and but had would always be over here and they would not be where they belong and i would have to move them and everybody knows i'm too lazy to go to the taylor and get it done. stuart: in all seriousness you do have -- of professor has tenure. you can't get fired. if i am not mistaken, you get one year off every seven years as a sabbatical fleet paid and you work relatively short hours, you have the whole summer off, you have a month for christmas off. that is pretty cushy, isn't it? >> you covered a lot of ground. first of all, the sabbatical is half pay for year. just so we get the facts straight. we work all year round. folks don't realize things professors do other than to each. i have a media career. i published twice a year and a

major metropolitan newspaper. i'm not syndicated so i have to land those by selling them. [talking over each other] >> it is a small amount of money. most papers don't pay. if i get paid it is $100 in the mail or something like that. is very marginal. it is part of my service activity to the university, it raises the visibility. other professors don't do that. they do other things but you try landing a couple of bads a week in a major paper or on the fox network when you are not on contracts. it is tough work. stuart: you are leading a cushy life, are you not? >> i'm not defending, i'm trying to explain to you what we do. i have a guy who is an expert in the integration of new technology and marketing, essentially internet marketing, gadgets, software and so forth. that is the 65 day year job trying to keep up. another is an expert in the

integration of new technology into logistics management. most of us work 11 months a year just like everybody else. depends what level of university you are at. if you are in a relatively small school, lead emissions standards you face a different stress. you don't have the kind of students you like to have do university work and it is a great deal of effort to teach them because we send more people to college than we should. stuart: why does the price of college keep going up over and above the level of inflation? >> i will cop out on their really well but the wall street journal back me up. last week there was an article about the explosion of administrators at universities and part of that is the cost of keeping up with federal regulation but also part of it is the competition we had. universities really compete strenuously for students and we are required to provide all manner of students services we didn't want provide and there's a lot of pressure to be very

inclusive and that requires a lot of students services as well. not from the growth of faculty salaries. p have a good one for you. i haven't had a raise in six years because of financial conditions in the state of maryland. stuart: which job would you rather have? mine or yours? >> actually given the way i discovered i like the media over the last ten years i would like to have your, not because you have a better job but because i have been doing this so many years it would be nice to have a switch. stuart: when you agree there's a difference in stress level between a professor and the tv guy? >> do you think you have a more stressful life than i do? stuart: much more. i get up at 3:30 in the morning and already on the blackberry by 4:00 every morning and working with four or quiet five different produces all the way in, walk in the office at 5:00 and have a series of deadlines i have to me to.

i go home at about 2:00 in the afternoon and then i am still on the blackberry and tonight i have to come back and work with shaun hannah the law that 9:00 tonight. that is a long day with a lot of stress and a lot of deadlines. >> you should talk to your producers who work at fox and other networks. i am frequently at my desk at 5:00 a.m. reading what is going on in asia and i will appear on this network at 5:00 in the morning at 5:00 at night. i have done that on many days. in between i go to the university and teach. i have colleagues who are under extraordinary pressure to publish, who worked well hour days, six days a week, virtually every day of the year. it is very easy to look at someone else's job and not see all the they do. just like vocal see you on tv a few hours a day and don't realize all the preparation and all of the study the goes into doing the various jobs. stuart: i am surprised. i think you are a little

defensive. >> can you blame me given the way you set up that question? stuart: very good. we will have feedback and we will discuss working hours and stress. >> take care of yourself. stuart: college kids now feel more entitled than ever. they are full of themselves according to a new study but is that actually a bad thing? after the break a college student reports for us on his generation's sense of entitlement.

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stuart: yum brands, parent company of kfc, taco bell and others say sales in china dropped more than expected. the company says it got bad publicity from a government review of its chicken, shares are down 4%. louis ambrosia is going to step down as the ceo of sears for family health reasons after the store reported a 2% decline in sales. eddie lambert will take over as ceo, keeping the current role as chairman, stock is down 7%. boeing shares, aviation safety officials looking into the electrical fire on a 787 dreamliner yesterday at logan airport, it is another blow to boeing after a string of problems with the airline's engines and electrical systems. we have college kids full of

themselves.

stuart: cote, which i call democratic luxury, apparently that stock is up today. how big? nicole: stock is looking good on a day when retailers are next. coach is one of the stellar performers over 3%. some of the analysts are raving their estimates for the latest quarter. that is some good news. also just looked up the analyst reports about 26 have buy

ratings, had tolds and not many sell. there's a lot of talk and this is stuff that really has been beaten down. it has some room to the upside. stuart: 57 coach. a new study says college students are more and titles, they feel themselves more in title than ever. very high opinion of themselves. they expect more even though they haven't achieved anything significant yet. they're still in charge -- in college. charlie kirk from turning point usa is here. the study says that high opinion of themselves, full of themselves, pretty good academically, they are full of themselves. is there something wrong with that? >> i think there is. the problem is they think so highly of themselves and return they want something, i want a free education, i want a free job that is higher-paying and my parents. even though they think highly of

themselves, it is beyond i'm good at something but to the point where i deserve the world and that is what the school system is teaching. you get a trophy at age 7 no matter how well you do. stuart: i suspect this is for my generation of parents, baby boomers raising children and raise them by always praising them for every single thing they do. they get a b or c, very good indeed. >> in the local school near chicago they no longer a allow failing. you just move on. you need a little more attention. you are not allowed to be held back a grade. it says it is okay if you get a seat or a b, we are now striving for excellence of the kid who gets cs says i'm a great student but in reality if he is putting the effort forward we are not teaching merit. they think they're the greatest student in the world and because of that i should get an education, my whole life given a tour of the. stuart: you promote capitalism. competition and merit and self-reliance and all the rest

and you think that runs counter to this feel-good entitled generation. >> life is tough and kids from elementary school to when they graduate college live a pretty nice life. a lot of kids don't have to pay for college and kids take care of it and reality of capitalism is you have to be self-reliant. my dad worked his way through college. my family had to take out loans and put out loans their parents did and for the first couple years and now kids get a no interest loan for when they graduate but the hard reality awaiting them look at obamacare, they don't get off of their parents until 26, like getting pushed back. stuart: he is 19 years old and sounds like he is 59 years old. he does. charles: he is in the heart of the all. i had this conversation with my son, i'm worried because i don't see you hitting the books the way you should. how good your great? they are good. what does that mean? in the 80s. i said that is not good. you can't pat yourself on the back for 80s. >> when i was growing up, the worst in the league would get a

trophy bigger than the lombardi. see how big growth is getting now? bigger than the world cup. everyone no matter how bad you why have you seen some movie where we don't keep score? we always tie in this league. that is the environment these to the ground up again. stuart: you are conservative. >> i man independent free-market thinker. stuart: good luck getting elected to anything with the point of view that says more responsibly, try harder, strive, get up in the world. that is the old-fashioned way. that just lost the last election. >> we need to frame it in more opportunities society instead of saying it might be hard but look at the amazing opportunity the system can create for young people. i ask young people all the time you want to start a small business? i want to work with somebody. why don't you want to take a risk? i don't know if i should do it. we should promote risk-taking. sandra: the news with -- [talking over each other] >> a lot of interesting things

and teaching young people that the society of free markets and capitalism is going to bring more opportunity rather than government handout. stuart: when you got an extra two minutes. we did -- that was very good. thank you very much. president obama sine die five your extension of the warrantless wiretapping program. could the government listening to your private conversations? is the program even legal? the judge is coming back for this and he is next. ♪

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stuart: aig receive $180 billion in a taxpayer bailout. you would think the company would be grateful but aig may join a lawsuit and sue the federal government over the terms of the bailout. a argue the deal was unfair, cost money. the judge is here and i'm sure he has a comment. judge napolitano: their argument to the government forced him to sell 80% of their stock and charge them 14% interest. it didn't charge anybody else interest of that magnitude and didn't force anyone else to sell 80% mess stock so they were not treaaed equally with others and their stock value went down and when the government to compensate them for that loss. it currently valid rational totally constitutional argument. stuart: rotten for p r. judge napolitano: you could make

that argument as i'm sure you will. stuart: president obama sine die five year extension of the warrant was wiretapping program first passed under president bush. could the government be listening to your private conversations? is the program legal? judge napolitano: the program is legal because the government has made it legal. the question is is it constitutional? in my view is unconstitutional. if you i going to call your aunt in london, the government can listen to that conversation even though there's not a whiff of suspicion that you are a terrorist or that she is, just because you are an american speaking to someone of receive bacon listen to the conversation. a business associate and india or china, the government can read the e-mail just because you are an american and that person is overseas. stuart: on the grounds that i may be engaging in a terrorist -- judge napolitano: absurd racist beliefs that americans who deal

with foreigners are more likely to be a danger to the security of a country than americans who don't. stuart: is there evidence that listening to this kind of communication has stopped terrorist incidents? judge napolitano: the government will say yes that won't reduce the evidence because it claims that is secret. believe it if you want to. stuart: when you don't? judge napolitano: i don't believe it but even if it were so is a violation of your fourth amendment privilege to be free from unreasonable search and seizure. all listening of conversations and monitoring of the mails without a warrant under the law is unreasonable and unconstitutional. stuart: i can show you a software program that scans all communication worldwide and picks out keywords and put them together. it is anonymous and nothing wrong with it. judge napolitano: that is so appropriate that you said that. how does the government know you are talking to and chili? listens to all your conversations. if they hear my voice, not supposed to listen, don't

listen. stuart: we have run out of time. thank you very much indeed. hold on, the highlight reel is next. >> announcer: you never know when, buthies can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most... [beeping.. helping stop crooks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your

identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you